Importance of Investment Plan to Build a Secured Future

In today’s times, people are always on a regular lookout for investment options with decent financial returns. When it comes to making an investment choice it is not an easy task. Clear planning and analytical thinking are important when selecting the right investment in India.

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7.7 Crore

Registered Consumer

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

We are living in a time wherein it is important to have multiple sources of income and that is why investment is crucial.

To lead a comfortable life and provide a hassle-free lifestyle to your family members is not a cakewalk. You work hard to earn money so that the dreams and desires of the family are fulfilled.

Therefore, the investment must be made in the right direction. Besides, if you have money lying idle in the bank account then it is an opportunity lost. Make smart investment decisions and it will help you to get good returns out of it.

What is an Investment Plan?

In the simplest words, investment plans are essentially the financial products that offer the opportunity to create a corpus for the future.

One of the key aspects of an investment plan is that it inculcates financial discipline in individuals and let them make the periodic investment into various funds from time to time that would help to achieve the financial objective for the future.

Why Investment is Important?

Investing is a key aspect of creating wealth, which enables you to beat inflation and help to fulfil the financial objectives and at the same time stabilize the financial future as well.

The financial objectives are not the same and differ from person to person. The decision of investment should be taken on the premise of the risk appetite of the investor and likewise, the investor is clear with the classification of investment plans on different parameters of risk.

Is There a Difference Between an Investment Plan and a Savings Plan?

Talking about the importance of investment it is important to understand the terms clearly.

Investment and savings are such terms that are used interchangeably mostly, however, this is not always correct. Each one of us needs to understand that both investment and savings are various types of financial instruments that are used to accomplish different requirements and needs.

Now let us take a quick understanding of both the terms below:

Investment

Investment essentially refers to buying assets such as real estate, stock, bond, mutual funds, etc. that helps to grow the money over some time.
Savings

This term means when you put aside cash that could be used in the coming times. The money is preferably kept in banks saving account and can be accessed whenever the need occurs.

In the simplest words, a savings plan enables you to create a corpus over time and when it comes to an investment in India then it provides you with an avenue that helps to grow the money.

How to Go With an Investment Plan in India?

The initial step in planning the investment is to figure out the correct investment plans that will your financial profile and requirements. When choosing the investment plan it is prudent to conduct thorough research and not fall for schemes that offer high returns within a short period.

When you make that investment decision, do not forget to review your financial position constantly and also keep an eye on the implications of tax upon the capital gains and returns that you will make from the certain investment plan. The Indian market is flooded with too many investment options that will generate high returns for you.

When Should You Opt For an Investment Plan?

The truth is that every individual has a certain objective that they wish to achieve over a period. The right investment plans play an inevitable role to realize these objectives.

In the present scenario, one thing is clear that only earnings and some saving are merely not enough to survive. To meet the expected and unexpected finances and leading a financially secured life it becomes important to select the right investment avenues that will enable to grow the money.

It is to be noted that before you choose an investment plan in India, make sure that you should have certain objectives as it will enable you to streamline the process of the investment process.

Is a Short-term Investment Better Than a Long-term Investment Option?

Well, the answer to this query certainly depends on the premise of the financial objectives. By now, you have understood the importance of investment.

Next, the best you can do is to have a mix of both the long-term and short-term investment options in your investment portfolio.

The short-term investment plan is helpful when it comes to meeting the short-term financial objectives such as buying a car and so on whereas with a long-term investment plan you can achieve long-term objectives such as buying a house.

Besides, long-term investment plans are a safer option as it gives you the window to enjoy higher and better returns comparatively.

The Bottom Line

In India, investors prefer to park the investments in a way wherein it will let you fetch good returns within some time and with minimum risks. This one of the key reason that individual looks for the options of the best investment in India that helps them to double the returns with almost no risk factor.

However, you should understand that no investment provides higher returns with negligible risk as the return factor is directly related. The rule is simple the early you get it the better it is. When the risk is high, higher will be the returns and when the risk is low then lower will be the returns.

Happy Investing!

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Past 10 Years' annualised returns as on 01-01-2025

^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%

¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.

**Returns are based on past 10 years’ fund performance data (Fund Data Source: Value Research).